Biofuel Logistics

Michael Wirth from Chevron brings to the table an interesting perspective on the biofuels issue that I hadn't heard before -- namely that from a business point of view you want to refine oil in a small number of giant facilities that reap economies of scale. The costs of transporting the biomass that you would turn into fuel, by contrast, are such that you would want to have lots and lots of much smaller facilities. That, in turn, would require changes both in business practices but also probably policy shifts about where you're allowed to build things since the opening of a new refinery is the kind of thing likely to prompt a lot of NIMBY objections.